Think of a time when you had to call consumer service. How did you feel before you made the call? What about during the call, and after you hung up? Many would say we experience frustration, anger, disappointment, or confusion. Now it’s time for the big question: how do your consumers feel after talking to your company? Perhaps it’s the same feelings just mentioned? It’s time for a better way.

If you want to make the collection or legal process less painful, make it less of a process and more of a connection. There is the stereotype of the aggressive and shaming bully of a debt collector or attorney for a reason. Mary Shores changed the way we approach the consumer at our company and it has made a big impact on our clients, our consumers, and ultimately our bottom line. At Midstate Collection Solutions, we focus on making people feel good about paying their debt because we know that having a debt is a burden on both the consumer and the client; we want to be the solution. Changing the industry perception has been a vision of Mary’s for years—she is working diligently to prove that collection agencies and attorneys are not the bad guys that people make them out to be, and her innovative approach to communicating is doing just that. Within the first year of implementing this new communications strategy, our revenues increased over 33%, allowing us to collect more money from consumers while reducing lawsuits and work towards our goal of improving the industry perception!

The way we communicate with others has a significant impact on the end-result of the interaction. For example, studies have shown throughout the years that the probability of a physician being sued by a patient can be determined within the first few minutes of their interaction solely based on how they communicate with their patient. Now apply this same principle to your company. Your consumers are more likely to file a lawsuit against your company based on your communications with them and how they feel they are being treated.

What if you, too, can radically decrease the probability of lawsuits and increase your success in collections within your organization just by simply changing the way you communicate with your clients and consumers?Words That Work can do just that.

What is “Words That Work”?

Mary’s innovative three-step communications philosophy is based on psychology, neuroscience, and biochemistry. This radical system is effective because it empowers staff, creates consistency, and increases overall satisfaction.

Words That Work is comprised of 3 rules:

Stop Saying Negative Words

Start Using Words That Work

Always Say What You Can Do

Stop Saying Negative Words

We have a Do Not Say List that all employees must follow at our company. The top six words on this infamous list are: no, not, can’t, won’t, however, and unfortunately. All of these words plant giant seeds of negativity, subconsciously reinforcing a negative outcome in the situation. Another issue that falls under negative words is passive phrasing, such as “Is there any way you can pay this today?” Eliminate negative words first, and you’re well on your way towards your goals of decreasing lawsuits and increasing collections.

Start Using Words That Work

Based on psychology, neuroscience, and biochemistry, Words That Work is made of words and phrases that trigger positive or relaxing emotions taking your staff and consumers out of fight-or-flight and putting them in rest-and-digest. The sympathetic nervous system is responsible for aggression, anxiety, negative perceptions, increased attention to negative stimuli, and recall of negative experiences. When activated with Words That Work, the parasympathetic nervous system balances out that reaction by promoting growth and regeneration, building loyalty and rapport, feeling relaxing emotions, and increasing the likelihood of being open and receptive to communications.

Always Say What You Can Do

Telling the consumer what your next step is in the process sets proper expectations, builds confidence and rapport, and informs the consumer of the solution all while simply stating what the next actions are going to be. Sometimes you don’t always know what you can do in the moment, or you may need to look into the situation further before coming up with a solution. When you need more time to look into the consumer’s account or come up with a solution, be honest, and set a realistic expectation of when you will get back to them.

3 Steps to Using Words That Work

Now that you know the 3 rules of Words That Work, here’s how you apply them in your communications.

1. Validate—When you validate the consumer, it lets them know you heard and understand them. You build rapport and trust. It’s important to note that validation does not necessarily mean you agree with what it is the consumer is saying; you’re just consciously acknowledging what they’re telling you so they understand you’re actively listening to their concerns and situation./p>>

“I appreciate you sharing that with me.”

2. Plant Seeds of Happiness—By using powerful words, you assure the consumer that you are doing everything in your power to resolve their concerns.

“I can definitely resolve this problem for you.”

3. Use an Action Statement—This empowers you to remain in control of the conversation, sets proper expectations, and instills confidence in the consumer that you are going to help them.

“What I can do for you is…”

Implementing Words That Work as simple as rephrasing what most employees already say. For example, if someone is trying to schedule an appointment and there’s no availability right away, try rephrasing like this.

Stop Saying: I’m sorry—unfortunately, I don’t have an opening until next week.

Start Saying: I have great news! An appointment just became available! I can schedule you for Monday at 10 am.

Tying It All Together

Take a bit of time each day to focus on becoming aware of what you say to reduce your chances of facing litigation, improve your success in collections, and build a more positive reputation for your company and for the clients you represent. Slowly weed out negative words, replace them with Words That Work, and tell people what you can do for them. Always validate either the positive or the negative statements you’re being told. Your next step is to plant a seed of happiness and end with an action statement to present your solution to significantly improve your consumer service outcome. If you tell someone what you can do for them, they’re less likely to be upset when they can’t have things their way.

Here at Midstate Collections, we are always striving to educate, empower, and entertain you to take inspired action. It is no secret that communication is a powerful tool. Creating and delivering consistent information to consumers empowers your staff to know there is always a solution. Having access to all these resources helps your staff to feel confident and provide quality results every time. Applying Words That Work in your work will be more challenging than you may expect. You are breaking old habits and configuring new neural pathways in your brain. If you have any questions or would like any guidance at all on how to use Words That Work, Maghan Moslander, the Business Development Coordinator at Midstate Collection Solutions, would be thrilled to hear from you.

We have a free workbook resource based on this article if you are ready to start implementing Words That Work in your organization and want to complete exercises to help take you to the next level. Request your free workbook for this training by emailing Maghan Moslander at [email protected]

A few weeks ago the Cornerstone team arrived in Seattle for the ACA International Convention & Expo. It was a great time to connect with clients and friends as well as hear the latest updates for the industry. We’re sharing some of the things we learned below.

The topic of the CFPB’s future under the new administration was a major point of conversation at the ACA Convention. Although the consensus was that all the moving parts involved render projections virtually impossible, there were two recent events that were points of interest:

The Treasury released a very candid report about the CFPB and included the following points:

The CFPB’s structure renders it unaccountable

The CFPB created marketplace uncertainty by maximizing discretion

The Consumer Complaint Database lacks appropriate safeguards

The CFPB’s supervisory authority is duplicative and unnecessary

Cordray’s Remarks– 8 June, 2017

“As we evaluated the feedback we received on the proposals under consideration, one thing became clear. Writing rules to make sure debt collectors have the right information about their debts is best handled by considering solutions from first-party creditors and third-party collectors at the same time. First-party creditors like banks and other lenders create the information about the debt, and they may use it to collect the debt themselves. Or they may provide it to companies that collect the debt on their behalf or buy the debt outright. Either way, those actually collecting on the debts need to have the correct and accurate information. All of these parties must work together to ensure they are collecting the right amount of debt from the right consumer.”

If you’re interested in talking more about what we heard at the ACA Convention, feel free to reach out to us.

On May 15, the U.S. Supreme Court put to rest a theory of liability under the Fair Debt Collections Practices Act (FDCPA or Act). This has a major impact on both the credit and collections industry as well as bankruptcy practitioners who represent creditors.

The court found that “the filing of a proof of claim that is obviously time-barred is not a false, deceptive, misleading, unfair or unconscionable debt collection practice” under the FDCPA, reversing the judgment of the Eleventh Circuit.

Three things were found in this case:

State law determines whether a person has a “claim” or “right to payment” – In this case, the law of Alabama says a creditor has the right to payment of a debt even after the limitations period has expired.

A Proof of Claim is Not a Civil Lawsuit – The filing of a lawsuit to collect a debt beyond the statute of limitations is in fact an FDCPA violation.

The FDCPA and the Code serve separate purposes – With the FDCPA, the Acts work to protect consumers by preventing consumer bankruptcies in the first place. The Code creates and maintains the delicate balance of a debtor’s protections and obligations.

The courts have spent many years stretching the Act beyond what Congress had intended. The FDCPA has seen many interpretations due to a lack of regulation. This case is just another example.

Maintaining your state licenses can be a complicated and time-consuming process. States are continually changing statutory regulations and application requirements making it difficult to stay informed. On top of that, penalties can be serious.

However, many collections agencies still choose to handle their own licensing paperwork. This can be a huge risk and cause more problems than it’s worth.

Here are 4 reasons why you should leave licensing to the pros:

Time – Finding and filling out the appropriate paperwork takes a lot of time to complete. It’s more beneficial to work with an agency that has done this for many years and can quickly complete what’s required.

Connections – We file over 25,000 renewal applications a year and know exactly how the various state regulators like the applications, cover letters and attachments. That consistency allows the application to be reviewed quicker with fewer deficiencies. We work to ensure the licensing process is faster and more streamlined for you.

Knowledge – Regulations and requirements change all the time. Work with someone that is up to date and knows the requirements. Without this knowledge, you run the risk of spending too much time searching for the required paperwork, or worse, use the incorrect paperwork.

Attachments and Supplemental Information – Similar to paperwork, financial requirements are also changing constantly. Sending financial information in the wrong format or on the wrong form can significantly delay the processing of a renewal application. The renewal instructions are not always clear about what is required with the application. Omitting required information or providing information in the wrong form can lead to significant delays in processing a renewal application.

What worked yesterday may not work today. Requirements and rules are always changing, and it’s beneficial to work with someone that is aware of current conditions and requirements. Compliance doesn’t care that you did not know or were not aware. If you don’t want to risk losing a license, make the smart decision to work with someone that has the connections and knowledge you need.

We stay up to date on the major issues that compliance officers face and the requirements enacted by the states to ensure you don’t face penalties and fines. Reach out to us if you’d like to talk about your licensing requirements.

June is a big month for license renewals for collection agencies, debt buyers, and attorneys. These license renewals can be complicated and time-consuming. States are continually changing their regulations and application requirements making it difficult to stay informed.

Make sure you’re prepared and don’t get caught without a license.

Here are four things you need to know as you prepare for license renewals:

Forms. States change forms often, so make sure you have the correct one(s).

Financials. Similar to forms, the financial information requested can change often as well. What is required this year can be completely different the next renewal cycle.

Collectors. Make sure you know exactly who needs to be registered as you’ll need this information when completing your renewal paperwork.

Bonds. Pay your premium when they’re due, and make sure you have the correct due date.

We know how complicated this process can be, especially with requirements changing so frequently. Our renewal services include tracking renewal deadlines, preparing all renewal paperwork, submitting all completed paperwork, and following up on the status of any submitted renewal applications.

We guarantee the prompt and timely submission and delivery of each renewal and annual report package to the appropriate state department. If we fail to meet the deadline and the agency has provided all necessary materials on a timely basis, we will pay any late fees that are incurred.

Reach out to us if you’d like to learn more about our license renewal services.

The New York Department of Financial Services (“NYDFS”) has issued new cybersecurity regulations that went into effect on March 1, 2017. New York Governor Andrew Cuomo described the new regulations as the “first-in-the-nation” to require cybersecurity protections for New York consumers from the ever-growing threat of cyber-attacks.

Many companies continue to struggle with the question of how far the NYDFS regulations will reach outside of New York and whether the NYDFS cybersecurity approach will become the de facto national standard in the absence of further action on the federal level. Covered entities, as defined in the new regulations, include any individual or non-governmental entity operating under a license, registration, charter, certificate, permit, accreditation, or similar authorization under New York banking, insurance, or financial services laws.

Under the new regulations, NYDFS expects covered entities to implement highly specific technical measures as part of a cybersecurity program to address cybersecurity risks “in a robust fashion,” such as hiring a Chief Information Security Officer (“CISO”), multi-factor authentication, encryption, penetration testing, and heightened reporting of “cyber security incidents” to NYDFS within 72 hours. These state-level requirements differ dramatically from the risk-based approach generally taken on the federal level. Early versions of the NYDFS regulations were even more prescriptive, but in the face of harsh criticism from industry participants, the final regulations permit financial institutions to tailor certain aspects of their cyber security program to reflect the company’s own risk assessment.

Financial institutions will need to move swiftly in preparation for the upcoming compliance deadlines established under the NYDFS regulations. Compliance with the NYDFS regulations should be taken seriously by the highest level in companies that are considered covered entities as someone from a company’s Board or senior management will be required to sign an annual certification confirming compliance with these regulations – the first such certification must be submitted no later than February 15, 2018. NYDFS urges, “all regulated institutions that have not yet done so to move swiftly and urgently to adopt a cybersecurity program” that complies with the minimum standards set forth in the new regulations.

Attorneys in Ballard Spahr’s Consumer Financial Services and Privacy and Data Security Groups can provide guidance on how to ensure compliance with the full range of state and federal privacy and data security laws and regulations impacting the consumer financial services industry. We regularly advise clients on the development and enhancement of risk-based information security programs, including conducting risk assessments and crafting comprehensive incident response plans.

In the collections industry paperwork, requirements and deadlines are a big part of the business. Compliance is key to remaining in good standing. We’re often asked about the difference in annual reports and license renewals.

First, we need to define both.

Annual Reports renew your certificate of authority registrations with each Secretary of State. These filings contain specific corporate information and must be updated each year (or two) to remain compliant.

License Renewals and the miscellaneous supplemental filings are the filings necessary to keep your debt collection licensing in good standing. If proper renewals are not filed, an agency will lose their ability to collect debt.

The primary difference is Annual Reports are filed with the Secretary of State while the License Renewals are filed with the appropriate licensing board allowing you to continue the business activity for which they were issued. Both of these actions are indeed required to remain compliant and in business. It’s important to submit both completed renewal applications and annual report applications to the appropriate state department in a timely manner along with all required documentation requested by the states.

Annual Reports are filed with the Secretary of State while the License Renewals are filed with the appropriate licensing board allowing you to continue the business activity for which they were issued.

Collection agency registrations and licenses are not a one-time filing! Renewal filings are due, in most cases, yearly with some occurring every few years. The complexity of compliance in part comes from deadlines. License Renewals happen at different times for each state and may have to be filed in multiple parts Many states have supplemental filings as well that if not filed, the underlying collection agency license is lost. Annual Reports also have deadlines separate and apart from the License Renewals. Not only do you have to be registered and licensed, you must also be up to date with renewal filings to collect debt. Additional complexity is added by way of states continually changing statutory regulations and application requirements making it difficult to stay informed. Let us not forget the importance of change notifications as well. When changes to your corporate structure occur (officer, collection manager, address, ownership etc.) there are statutory guidelines which must be met in order to avoid penalties, fines and loss of licensure.

We all want to have the best collectors and employees at our agency. You want employees that get the job done while remaining compliant and those that just bring a good vibe to the office. How do you do that?

Here are 4 things you need to have in order to attract the best employees:

Great benefits including insurance and vacation – This used to be a given and the same across the board, but not anymore. Vacation PTO is all over the board and employees are looking for flexibility here. Health insurance options continue to change and become complicated. Look into each option available and find the best one for both employees and you.

Strong retirement plan – This is a huge one! Employees are looking for a way to invest in their future, and you need to provide it. There are many options available, including 401k and Simple IRA. Consider a company match. That’s going to set you apart from competitors, bringing the better employees your way.

Positive environment – The nature of our business can be tough. Make sure you’re providing an environment that is exciting and somewhere employees want to come to every day. This will also change as you begin to find and attract these positive employees.

A way to develop skills and potential – Employees need to see the potential for growth. Whatever that looks like for you, make sure you’re offering a way for your employees to grow. Training programs, seminars, etc. are all great options. This is especially important as millennials and Gen Xers begin to take over the workforce.

Many years ago all agencies were the same when it came to benefits offered, but not anymore. Know your options and offer the best you can when it comes to these benefits. It’s what the great employees are looking for, and in order to obtain them, you need to offer what they’re looking for.

It starts with the hiring process. Ensuring that you find employees that fit the mold and culture of your agency that you can see potential in. When you finally find the best employees, you want to do your best to keep them. Do this by motivating them, encouraging them and maintaining that positive culture.

The Debt Buyers Association, International (DBA) recently celebrated their 20th anniversary at their annual conference in Las Vegas, NV. We had a chance to attend the conference again this February. More than 900 people were in attendance this year (the conference hosted roughly 60 attendees in 1997).

One particular session at the conference included five past DBA presidents, who each shared their collective wisdom by telling tales of how the debt buying industry has moved from a “cowboy culture” in the early days to a “consumer friendly” culture in recent days.In the early days, it required great trust in the people you were working with.The industry was desperate for an organization to become the standard bearer.This is the role that the DBA has sought to provide over the years.

The debt buying industry has moved from a cowboy culture to a consumer friendly culture.

Throughout this session, each of the previous presidents helped attendees to understand that in the early days (circa August of 1996) debt buying was just an experiment done by a few banks.Debt purchasing didn’t initially fit into any category as a brand new and fast-growing industry.As time went on, it became very necessary to legitimize the practices of debt purchasing.There was a need for a credibility standard in the industry as well.Today, the membership of debt buyers has grown into a comprehensive industry.

The DBA has helped educate and advocate with state and federal regulators who have also grown in their understanding of the growing industry.The DBA has worked over the last 20 years to have a seat at the table of decision makers to help shape the industry.

The Trump administration takes aim at rolling back regulations, such as revisiting the Dodd-Frank legislation. It is possible that Federal regulations may be reduced.The state regulations, however, will likely stand firm, often picking up where Federal regulations may be letting go.The DBA collectively remains cautiously optimistic that their relationships that have been built over 20 years will continue to provide the industry standard of education and advocacy.

While the DBA celebrated their 20th annual conference, we also celebrate our 20th year as a company in the debt collection and debt buying industry.As the industry has grown, we’ve had the privilege of helping hundreds of companies manage their licensing, bonds and insurance. Let us know how we can help you!

The debt collections industry is increasingly regulated. Collectors have the task of representing many different people and must ensure that all actions are compliant.

One important area of compliance is consumer communication. Collectors have to be trained on how to avoid violating the 30-day validation period when the communicate with the consumer.

It’s important to remember that most creditors require agencies to complete a series of scrubs and mail the initial letter upon placement. Once complete, you can begin making calls. Collectors are also no longer incentivized to collect the debt no matter how it’s done. They must collect the bill and do so in a way that does not harm the consumer by misrepresenting their clients’ intentions or stating the ways that nonpayment could affect the consumer.

Here are 4 important steps for collectors to remain compliant during communication:

Ask the consumer to pay within the first thirty days. A debt collector cannot demand consumer pay in a shorter time frame without risking an FDCPA violation.

Identify consumer, creditor, yourself, and the company you are calling from.

Provide the required mini-Miranda and two party consent disclosures

Attempt to collect the debt by asking the consumer if they can pay in full, settle or work out a payment arrangement.

Be cautious after step 4, because that is where the majority of potential UDAAP violations can occur.

In the past, collectors would attempt to motivate the consumer by explaining how paying would improve their financial situation. They would talk consumers out of settlements because balances paid in full look better on the consumers’ credit report. These tactics could mislead or deceive the consumer – and that is exactly what regulators prohibit.

The collections industry is one of the most regulated, and continual training for those who are directly communicating with consumers is imperative.

The story our entire industry is keeping our eyes on: President Donald Trump is considering a replacement for Richard Cordray, the current director of the Consumer Financial Protection Bureau (CFPB).

This is huge news for our industry, as Trump is considering and met with former Rep. Randy Neugebauer as the replacement. Neugebauer has recently been very vocal in his criticism of the CFPB’s actions and its current structure.

“Unfortunately, the CFPB’s efforts represent yet another example of a Washington-knows-best mentality. Using behavioral economics, which by its very principles says policymakers should make choices for unsophisticated individuals, the CFPB has set down a road of paternalistic erosion of consumer product choice and access to credit.” – Randy Neugebauer

The CFPB is currently regulating our industry out of business. But there is a lot of optimism that new leadership will understand the value that our industry brings to the overall economy and regulates from that perspective.

Donald Trump’s ability to replace Cordray and appoint a new CFPB director might hinge on the results of the PHH v. CFPB case rehearing. The rehearing is being handled by the D.C. Circuit Court of Appeals, which will have to decide whether to uphold the October ruling that CFPB is unconstitutionally structured. If the court does uphold the original ruling, Trump will be able to remove Cordray at will and the bureau could be required to restructure and/or lose its status as an independent agency.

This gives our industry a huge sense of optimism when it comes to our future.

Communication methods are rapidly changing and it can be difficult to keep up. And as a debt collector, you must communicate to an increasingly diverse population. There are always going to be issues that make communication challenging.

It’s not just a matter of learning how to write a clear email anymore. It’s about receiving training in communication and human interaction that allows you to respond flexibly and dynamically to the ever-changing methods of communication.

As we all know, the debt collection industry is heavily regulated by a number of governing bodies. Communication is what separates the good agents from the great.

Here are a few things to keep in mind as you communicate with clients (or anyone, really):

Listen. The best thing you can do as a debt collector is listen to the client. Not only will this help you address the issue at hand (see #2), but you’ll gain a better relationship with the client by listening to them first.

Address the issue.You should be able to quickly figure out the dispute or issue at hand and find a solution. Communicate in a way that limits the issues at hand.

Know the background information.Take the time to understand the client and any source details that may be available as soon as you can. This allows you to better understand the issue and effectively find a solution before you begin communicating with the client.

Be Professional. This may be obvious, but should be said. There’s no need to be rude or aggressive, even if you are getting it from the other end of the line. There’s a polite and professional way to explain the circumstances to the client.

“Communication is the key to success” in any industry or business, but particularly for those of us in debt collection. Make a goal to be a better communicator in 2017.

Is your agency planning on hiring more in 2017? How do you ensure you’ve found the right person for the job?

A recent ACA International survey showed what specific characteristics and skills collection agencies are looking for in potential candidates. These are characteristics of a debt collector that’s going to succeed at their job and add value to your business.

Top 4 characteristics of an effective debt collector:

Integrity

Honesty

Patience

Politeness

Other important skills listed were active listening and service orientation. All very important when it comes to the collections industry.

The CFPB is stepping up their scrutiny of companies in the ARM industry in order to find non-compliance. Integrity, honesty, patience and politeness are keys to building a relationship with the consumer in order to work out a payment plan, all without appearing manipulative, unfair or deceptive.

Set yourself (and your team!) up for success this year. Make sure your new hires possess these characteristics, and you’ll be closer to finding the right additions to your team.

Each company holding an AZDFI Collection Agency License who wishes to manage their license on NMLS must create a company record in the system, both for the company itself and for each branch holding an AZDFI Collection Agency License. NMLS will annually charge a processing fee of $100 per company license, and $20 per licensed branch location renewed through the system. There is no processing fee for submitting a new application or transitioning an existing license onto NMLS.

All forms must be received by January 31, 2017.

NMLS is a secure web-based system created by state regulators to provide efficiencies in the processing of state licenses and to improve supervision of state-regulated industries. Through NMLS, companies maintain a single record which they use to apply for, maintain, renew, and surrender license authorities in one or more states.

You have taken steps to protect your agency against consumer lawsuits, but what about the potential threat from within your organization?

The number of lawsuits against employers for hiring and firing decisions, or even discrimination, continues to rise. No company is immune to these types of lawsuits, and the inevitable turnover on your collection floor staff can be a significant area of exposure. Even with strict policies and procedures in place, employment cases are expensive and difficult to win. That’s where Employment Practices Liability insurance kicks in.

Employment Practices Liability covers a company against various types of lawsuits from current and former employees. These types of suits can include harassment, discrimination, and wrongful termination. It includes full-time, part-time, leased, seasonal and temporary employees. Employment Practices Liability is often packaged with Directors & Officers (D&O) insurance to defend company officers from lawsuits by investors and shareholders. Fiduciary liability can also be packaged in this group of policies.

Give yourself peace of mind in 2017 when it comes to these liabilities. We work hard to find the best coverage possible for you, shopping around and taking a look at all options. Let us know how we can help you!

The Consumer Financial Protection Bureau, or CFPB, was launched with a goal of protecting consumers in financial transactions with banks and lending institutions. However, its reach has extended much further.

Not all businesses are aware of the necessary requirements in order to comply with CFPB regulations now. And non-compliance can cost businesses enormous penalties, fees, and fines. It also can affect their overall brand reputation. In an effort to avoid these penalties, today’s companies must be more proactive when it comes to CFPB compliance.

Examine your current vendors. Make sure vendors understand and are capable of complying with CFPB regulations. Review their policies to ensure proper education and management of employees who interact with your consumers and/or are in a compliance role. Also, if necessary, revise contract language to include expectations about compliance, and always spell out penalties for non-compliance as defined by CFPB. Finally, if serious issues are identified, take action immediately.

Require proactive compliance (with internal auditing) for vendors. Always call for vendors to complete an audit prior to CFPB examination by a third-party expert. It’s also important to request a mitigation plan and estimated timeline. If you have the time/resources, conduct your own internal audit of your company’s processes, policies, and internal controls through a non-bias, external partner. Be sure to take appropriate action based on the findings.

The CFPB regulations are not as daunting as you may think, but you want to make sure both you and your vendors are aware of them. Your goal should be to find those compliance holes and create a long-term, realistic plan.

Have you ever purchased a new toy for your kids, an expensive camera for a spouse, or even a new power tool for yourself, only to realize upon opening that you overlooked the “batteries not included” note on the box? Similar oversights with your business insurance can lead to major setbacks, and the fix isn’t always as simple as a $5 pack of batteries.

For example: What if one of your employees has an accident on the way to the bank, or in a rental car on a business trip?

Many companies with office-based operations (like a collection agency) might not carry a business auto policy if they do not own company vehicles. However, it is still important to account for the company’s exposure from borrowing or renting a vehicle for business use, or asking an employee to drive their personal vehicle for company business.

This is a gap that may be filled by adding hired/non-owned auto insurance onto your general liability/business owner package policy. This coverage is not intended to replace the employee’s primary personal car insurance, but is designed to protect your company from the secondary legal liability that could stem from an accident.

Hired/Non-Owned Auto coverage was designed to address the needs of companies with primarily incidental, lower-hazard auto exposures. This would typically apply to a company that does not own any business vehicles but might occasionally have to hire, rent or borrow a vehicle for business purposes. It can also involve the insured company requiring an employee to use his or her personal auto for business purposes. The coverage may extend to include bodily injury or property damage arising out of the loading or unloading of the vehicle in connection with the insured’s business.

Underwriters will evaluate the company’s frequency of use for personal vehicles, as well as the radius of travel, when determining eligibility and pricing. It is advisable to check the personal auto insurance of your employees before letting them drive for business purposes, and also to verify that their policy form does not exclude business use of their vehicle.

Cornerstone Support and its in-house insurance agency Integrity First Insurance strive to provide practical guidance by helping identify gaps and providing the best values to address them. If you have questions about hired/non-owned auto or have concerns about any other potential gaps in coverage, contact us at (770) 587-4595.

Contribution by Barbara Casserly, The Hartford, New Business Underwriter

Did you know: 50% of small businesses have been breached in the past 12 months. (According to a report by Keeper Security and the Ponemon Institute)

Data breaches are increasing at an alarming rate. Businesses, especially small businesses, continue to misjudge their cybersecurity risk and often obtain insufficient cybersecurity insurance protection (or none at all). 82% of small business owners don’t believe they’re a target for attacks because they don’t have anything worth stealing (via Towergate Insurance). They couldn’t be more wrong.

What do you think are your business’ most important assets and greatest vulnerabilities?

Cybersecurity risks generally fall into two categories:

Services shutting down

Information that is compromised, such as sensitive data, bank information, etc.

However, it can also be as simple as a stolen laptop. Most states have passed laws requiring notification of consumers whose personal information has been compromised in the event of a security breach. The costs associated with such notification – sending certified mail, changing account numbers, and subscribing to credit monitoring services – can be staggering at $30 or more per consumer.

Here are a few things you can do to lower your risk of a cybersecurity attack:

Keep your software up to date.

Educate yourself and employees on the risks.

Obtain Cyber Liability Insurance.

Implement security policies in the company.

Cyber Liability Insurance is often the most overlooked by businesses, but it super important. It doesn’t require any new software installation and keeps your business’ risk low. Let us know how we can ensure your business is covered when it comes to cybersecurity!

Have you found yourself staring out the window at the beautiful fall weather only to realize you’ve wasted half the day?

Staying productive at work can be a task in itself sometimes, especially when there’s a project or task that you just keep putting off. No matter how much you love your job, there are certain things that can prevent all of us from being productive sometimes. This can lead to stress or missed deadlines. If you’ve struggled to get things done lately, it’s time to make some changes.

Here are 4 things you can do to improve your productivity this week:

Give yourself quick 5-10 minute breaks. These quick breaks can give you clarity, especially when working on a large task. Step away from the task at hand and your desk to gain some inspiration and get some exercise. These are great times to get outside for some fresh air!

Set aside a “power hour” on your calendar. A power hour is one hour to get stuff done. Don’t allow yourself to get distracted during this time, and try your best to get rid of any distracting technology (goodbye, cell phone). Don’t allow anyone to interrupt you during this time as you focus on the task at hand.

Don’t allow email to become a distraction. Do you allow that little red (1) next to your email to distract you? It’s easy to constantly check email and ensure we never have something that needs to be read, but this can be horribly distracting for you. Set aside certain times that you will check email and don’t even look at it outside of those times.

Stay away from those pointless meetings. Before setting up a meeting, figure out if it really needs to be a meeting. Is it something that can be sent via email or other work communication tools? If so, utilize everyone’s time wisely and don’t schedule the meeting.

Taking these simple steps will allow you to get more done and stay productive. Keep a positive attitude and stay focused. You’ve got this!